The proposed Fayetteville village budget for 2010-11 calls for a tax rate of $6.70 per $1,000 of assessed value, the same rate as last year.

Fayetteville Mayor Mark Olson said the village has been able to maintain the tax rate even with the possible loss of sales tax revenue by freezing spending and cutting 10 percent in the expenses side of the budget.

The total proposed 2010-11 budget is $4.7 million, down from last year’s $5 million. Overall spending is down about 6 percent, Olson said.

“We’ve been able to save a lot on health insurance costs,” Olson said. “And we’ve asked all our department heads to trim five percent from their budgets."

The cost of health-insurance premiums is down $63,000 because the village switched to a new plan.

The village is facing a 28 percent increase in state retirement costs while its total assessed value has dropped $2 million from $281 million to $279 million.

Fayetteville is anticipating a 5 percent reduction in state aid, along with a possible 31 percent decrease ins sales tax revenue if Onondaga County doesn’t grant municipalities a share of the revenues. That’s a loss of $140,000 to the village.

“Next year it is going to really hurt if we lose that revenue source,” Olson said.

Because of decreases in bank dividends, interest earnings are down 50 percent. But on the plus side, the fire contract with the town district is down $154,000 because of paid-off bonds and reduced spending, the mayor said.